MFSA lifts suspension of €25m green bond trading

An MFSA decision to suspend trading in Malta’s “first-ever” €25 million green bond has been reversed after the Water Services Corporation (WSC)  published its audited accounts.

The Malta Financial Services Authority (MFSA) had halted trading in the bond until the WSC abided by its financial transparency commitments.

"The Authority is now satisfied that ClearFlowPlus plc has rectified its position through the publication of Water Services Corporation’s annual audited financial statements for the period ended 31 December 2025. Consequently, the suspension of trading of the above-mentioned securities has been terminated," the MFSA said.

Energy Minister Miriam Dalli launched the bond in 2023, saying it both underscored Malta’s commitment to environmental stewardship and positioned the country among the leaders in green finance.

The €25 million raised from the bond is earmarked to finance numerous green initiatives, including the reverse osmosis plant at Ħondoq ir-Rummien and the establishment of solar farms. 

The bond’s issuer, Clearflowplus plc acknowledged, in a statement, the WSC was unable to publish its audited 2025 accounts by the April 30 deadline set down by stock exchange rules. Clearflowplus, a subsidiary of the WSC, put the delay down to “unforeseen technological dependencies arising from third-party service providers” and the appointment of new external auditors.  

Clearflowplus emphasised in its statement that its own audited accounts had been finalised and published, without any concerns raised by its auditors. 

The company said that, following a “detailed assessment” of the WSC’s performance and cash flow projections, no concerns were raised about its ability to repay the €25 million loan. “The board is, therefore, satisfied that independent, risk-focused audit scrutiny of the Guarantor [WSC] has been completed without adverse finding, and that the guarantee underpinning the issuer’s bonds remains sound,” it noted.